Member Participation

European Union

Narrative

The EU’s Energy Union strategy – the reference frame for the EU’s energy and climate policy – is made up of 5 closely related and mutually reinforcing dimensions:

  • Security, solidarity and trust: Diversifying Europe’s sources of energy and making better, more efficient use of energy produced within the EU;
  • A fully-integrated internal energy market: Enabling energy to flow freely across the EU without any technical or regulatory barriers;
  • Energy efficiency: Energy efficiency first – it will reduce our dependence on energy imports, whilst reducing emissions;
  • Climate action – decarbonising the economy: Supporting ambitious climate policy as an integral part of the energy policy and fostering EU global leadership in renewables;
  • Research, innovation and competitiveness: Supporting breakthroughs in low-carbon technologies by prioritising research and innovation to drive the transition of the energy system and improve competitiveness.

Given its cross-cutting nature, research and innovation will contribute to all dimensions of the Energy Union and help Europe achieve its ambitious climate and energy targets. Considering the dimensions if the challenges ahead, the EU has programmed a significant increase of its budget dedicated to clean energy R&D.

“Clean energy is the future, so research and innovation must be at the forefront of our efforts to create sustainable, low-carbon economies. In contributing to Mission Innovation, the European Commission aims to use the European Union’s leadership and political commitment to the development of low-carbon technologies, while sharing its extensive experience in coordinating international research and innovation collaboration, to accelerate the clean energy revolution.”

Carlos Moedas, European Commissioner for Research, Science and Innovation.

“The European Commission is honoured to be part of Mission Innovation. Scaling up clean energy innovation is key to the success of the European Energy Union and to the implementation of the Paris Agreement on Climate Change. It also represents a major global economic and industrial opportunity. Mission Innovation, therefore, coheres perfectly with our upcoming research, innovation and competitiveness strategy.”

Maroš Šefčovič, European Commission Vice President for Energy

Funding Programme

‘Horizon 2020‘ is the EU’s funding programme for research and innovation in the period 2014-2020 with an overall budget of almost EUR 80 billion. Clean energy R&D is supported through a dedicated programme part (Societal Challenge ‘Secure, clean and efficient energy’), but also significantly in other parts across the programme.

Energy research and innovation priorities within Horizon 2020 are mainly defined by the Strategic Energy Technology Plan (SET-Plan) which represents the research and innovation implementing pillar of the EU’s Energy Union strategy.

Baseline and Doubling Plans

Methodology for Determining Baseline

eu-funding-graph

Average of the period 2013-2014-2015 as a Baseline reference for the doubling.

The Baseline Scenario (blue curve in the graph) is a projection of the clean energy R&D budget until year 2020 based on the real budget spent on clean energy R&D for 2014-2015 (real outcome of the calls).

The Mission Innovation Scenario (red curve in the graph) is a projection of the clean energy R&D budget until year 2020 where additional funds will be mobilised from Horizon 2020 to meet the Agreement reached at the UN Climate Change Conference 2015 (COP21) in Paris.

Overview of Clean Energy R&D Focus areas Emphasized in Mission Innovation Portfolio

uk-focus-areas
The key focus areas of Mission Innovation R&D investment do not represent the entire EU’s clean R&D portfolio. All EU clean R&D investment referred to in Mission Innovation relate to research, development and demonstration and not to deployment.

Industry & Buildings

The energy consumption by industry and buildings accounts for a substantial share of the total energy consumption. The EU, in partnership with industry, is investing in R&D for Energy-efficient buildings, Factories of the Future, and Sustainable Process Industries. The aim is to increase the competitiveness and energy efficiency of the construction sector, to increase sustainability of production processes and make the process industry more resource- and energy efficient. More information is available here.

Vehicles & Other Transportation

The decarbonisation of transportation, especially road transport, is crucial for reducing greenhouse gas emissions. The EU supports activities targeting cleaner technologies as well as more efficient management and manufacturing processes for different transport modes. More information is available here.

Bio-Based Fuels & Energy

Europe’s energy and climate goals require the development of new fuels and mobile energy sources, particularly in the field of transport. The EU supports different bioenergy pathways at different scales while minimising negative environmental and social impacts linked to land use. More information is available here.

Solar, Wind & Other Renewables

Fostering the development of renewable energy technologies has been one of the EU’s key priorities in R&D, particularly with regards to photovoltaics, concentrated solar power, bioenergy, biofuels and renewable alternative fuels, wind, ocean energy, geothermal, hydropower and renewable heating and cooling. More information is available here.

Hydrogen & Fuel Cells

The EU supports activities on fuel cells and hydrogen (FCH) through the Fuel Cells and Hydrogen Joint Undertaking (a public-private partnership) which covers mobile and stationary FCH applications for use in the energy and transport area. More information is available here.

CO2 Capture, Utilisation & Storage

In its strive to achieve the decarbonised power generation challenge by 2050, developing technologies for safe and secure Carbon Capture and Storage (CCS) has become a key area of interest in energy research. The EU supports the full CCS chain for a representative portfolio of different capture, transport, storage and re-use technology options. More information is available here.

Electricity Grid

The upgrade and development of energy networks across the EU is one of the key challenges to securing a sustainable and competitive energy future in the EU. In order to transform electricity networks into ‘smarter’ grids, the EU seeks to develop new components, technologies, and procedures which can respond to the particularities of both the transmission and distribution side of the grid. In this context, Smart Cities and Communities which foster a holistic approach for sustainable and innovative energy solutions are also a key area of interest to the EU. More information is available here.

Energy Storage

Energy storage is highly strategic for a more efficient use of renewable energy and its higher level of integration into the energy system. Storage can help deal with fluctuations in demand and generation in the electricity system by allowing excess electricity to be ‘saved’ for periods of higher electricity demand. In addition, storage via batteries or other carriers (e.g. hydrogen) allows for the introduction of renewable energy in transport besides biofuels. Finally, storage allows for a more flexible energy system. All forms of storage are supported by the EU. More information is available here.

Basic Energy Research

Achieving a more efficient and cost-competitive as well as cleaner, safer and more sustainable energy technologies will be required for the long term. The EU supports multi-disciplinary research to achieve scientific breakthroughs in energy-related concepts and enabling technologies. More information is available here and here.

Highlights

In July 2016, the Commission launched three energy Horizon 2020 Prizes here to reward innovative approaches that integrate solar energy into historical buildings, use renewable energy in hospitals, and develop products that help cut emissions by reusing carbon dioxide (CO2). These Prizes aim at creating future game changers with a different mind-set able to bring to life innovative products, services and successful companies along with tangible benefits for the citizens.

Baseline and Doubling Plans

  • Country-Determined Baseline Year(s): 2013-2015
  • Baseline Funding Amount: EUR ‎€989 million (USD $1.1 billion)
  • Doubling Target-Year: 2020
  • Doubling Target Amount: EUR €1.974 billion (USD $2.2 billion)
  • First-Year Mission Innovation Funding Amount: EUR €1.297 billion (USD $1.5 billion)
  • First-Year Mission Innovation Funding Increment: EUR €308 million (USD $346 million)

Methodology for Determining Baseline

Average of the period 2013-2014-2015 as a reference for the doubling.

EU funding for Clean Energy R&ampD

Taking into account that Mission Innovation was launched during the first part of the EU financial period 2014-2020 (i.e. end of 2015) and that the next financing decision on the overall EU budget will not take place before 2020, the EU takes the average of the period 2013-2015 as a reference for the doubling.

The Baseline Scenario (blue curve in the graph) is a projection of the clean energy R&D budget until year 2020 based on the real budget spent on clean energy R&D for 2014-2015 (real outcome of the calls).

The Mission Innovation Scenario (red curve in the graph) is a projection of the clean energy R&D budget until year 2020 where additional funds will be mobilised from Horizon 2020 to meet the Agreement reached at the UN Climate Change Conference 2015 (COP21) in Paris.

Member-Definition of Clean Energy R&D Investment

Sectors of clean energy R&D covered are renewable energy technologies, energy efficiency, energy system (smart grids, energy storage), carbon capture storage and use, and fuel cells and hydrogen. The Technology Readiness Levels covered are between 1 to 8 (i.e. these funds do not include deployment).

Overview of Clean Energy R&D Focus Areas Emphasized in Mission Innovation Portfolio

Industry & buildings

 

Vehicles & other transportation

 

Bio-based fuels & energy

 

Solar, wind & other renewables

 

Nuclear energy
Hydrogen & fuel cells

 

Cleaner fossil energy
CO2 capture, utilization & storage

 

Electricity grid

 

Energy storage

 

Basic energy research

 

Indicators are for key areas of Mission Innovation R&D investment but do not imply a comprehensive representation of EU’s full R&D portfolio.

Additional Information

Budget and Funding

The budget of the European Union (EU) is decided by the EU Council and the European Parliament. It is multi-annual and since 2007 it is decided for seven years. Experience for more than 20 years shows that there is almost no difference between the R&D budget as planned and as finally executed.

UK Budget Figures

 

Budget figures:

  • Figures are based on the budget decision already taken by the EU Council and the Parliament. They are in current prices and only relate to operational budgets (i.e. administrative budget are excluded).
  • Figures for the period 2007-2013 include FP7 (Seventh Framework Programme) and IEE (Intelligent Energy Europe). They are based on actual budget outturn.
  • Figures for Horizon 2020 (2014-2020) are based on latest financing programming (not on actual outturn) and match the budget stated in the legal base.

The EU clean energy R&D budget will be more than doubled over the two financial periods (i.e. between 2007-2013 and 2014-2020 with Mission Innovation scenario) Þ total EU clean energy R&D budget of EUR 3 813 million and EUR 10 233 million (programmed budget) respectively for each period (i.e. a factor of more than 2.5).

In line with the Agreement reached at the UN Climate Change Conference 2015 (COP21) in Paris, the European Commission will step up its efforts towards the transition of Europe to a low carbon economy. This will translate in the Mission Innovation Scenario presented in relation to investment in clean energy R&D, where additional funds will be mobilised from Horizon 2020.

This additional mobilisation of funds in Horizon 2020 will be realised via the Work Programmes 2016-2017, where more priority has been provided to climate related R&D compared to the Work Programmes 2014-2015 (clean energy R&D is a significant part of the climate related R&D). This effort will step up in the Work Programmes 2018-2019-2020, for which flexibility for additional prioritisation exists since the drafting of these Work Programmes has not yet started.

Doubling of the EU clean energy R&D within five years: between the average annual budget for the period 2013-2015 and the budget programmed for 2020 under the Mission Innovation Scenario, the EU clean energy annual R&D budget will have been doubled (from EUR 989 million on average to EUR 1 974 million).

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